Gray divorce is on the rise, posing a risk to retirement security

Divorce has become common in modern America; there around 672,000 in 2024 and 2 million weddings according to the CDC. But when couples split it can still be a shock, more so if they are older couples, perhaps seen as ‘together until the end.’

The fact is that marriages between people aged 65 and older doubled in 2010 having been stable in the late 20th century, with the rate continuing to climb. And that can add a new level of risk for retirement, even among those who thought they were secure.

Allianz Life’s 2025 Annual Retirement Study sheds light on the growing trend of ‘gray divorce’ and its serious financial ripple effects for retirees with 56% of retirees who took part in the research saying that divorce would derail their financial retirement strategy, rising to 67% among Hispanic respondents.

A third of married respondents said they are worried about not having a financial plan in case they divorce later in life and this is a greater concern among millennials (47%).

“No one wants to prepare for a divorce,” says Kelly LaVigne, VP of consumer insights, Allianz Life. “But divorce later in life – especially after retiring – is increasingly common. If you have been planning for retirement as a couple, then splitting up your assets to fund separate retirements can leave you short of achieving your retirement goals.”

Those who have already gone through a divorce confirmed the fears revealed by married respondents, with 40% saying it derailed their retirement plans and 34% saying it set them back. More than four in ten divorcees said the split had focused their attention on retirement plans.

Additionally, 54% say that they have substantially more financial responsibilities after their divorce and 41% say they feel more stressed about their finances since their divorce.

“It may sound cold hearted, but it’s important to consider how a divorce would affect your financial future,” LaVigne says. “Those going through ‘gray divorce’ don’t have the time to rebuild retirement savings on their own. Trying to fund two separate lives, instead of a joint one, can deplete retirement accounts faster than anticipated. They may need to delay their retirement to accumulate more savings and consider additional risk management strategies to ensure their funds can last their lifetime.”

Psychologist Dr. Chivonna Childs recently explained why gray divorce has been rising, noting a change from the days when women would perhaps stay in a marriage that’s unfulfilling.

“Gray divorce is often a choice to improve someone’s life and pursue personal growth,” Dr. Childs said in a Cleveland Clinic article. “It takes a lot of courage for people to make this decision, and they’re usually doing it for all the right reasons.”

The doctor explained that couples sometimes stay in a ‘silent marriage’ for a time but may later decide to divorce.